Rising Costs of Vending Operations
Planet Antares vending operators, among others, have raised their prices in several product categories but the price increases are not enough to offset the losses in pre-location sales or machine placements. Usually, the price gains are only a few cents on an average. This implies selective increases on an account basis as opposed to “across the board” increases.
In contrast, the operating costs have risen in other sectors as well. Along with product price rise, there has been an increase in fuel prices. This trend of rising prices has given Planet Antares vending operators a double whammy, because besides raising their own operating costs, these increases also result in lower disposable income for customers, leading them to spend less on refreshments.
Moreover, currency upgrades can also add to cost of operations. Recently, the government introduced a new design for the 20 dollar bill. Upgrades of bill changers and validators continued at certain percentage points.
Planet Antares vendors viewed higher denomination as a way to support higher product prices. Higher denomination bill acceptance also made it essential to have dollar coin payout, which required more 4 and 5 tube coin changers.
Due to rising operating costs, market share has been driven to both the extra-large and small operators. The larger operators have the financial resources to meet increasing costs and offer a wider range of products and services at the same time. The small operators enjoy the advantage of low overhead.
The ability of Planet Antares vending operators to invest in new technologies that offer customer benefits can also be limited by suppressed revenues. Cashless payment options and broadband wireless internet facility have already been offered by convenience stores and other sectors to attract more customers.
Vending operators fall behind in this race to offer customers new technology. There has been hardly any improvement in the percentage of operators that use DEX handheld computers which allow for more accurate cash counting and the ability to match selections to account preferences based on line item sales.
In contrast, the operating costs have risen in other sectors as well. Along with product price rise, there has been an increase in fuel prices. This trend of rising prices has given Planet Antares vending operators a double whammy, because besides raising their own operating costs, these increases also result in lower disposable income for customers, leading them to spend less on refreshments.
Moreover, currency upgrades can also add to cost of operations. Recently, the government introduced a new design for the 20 dollar bill. Upgrades of bill changers and validators continued at certain percentage points.
Planet Antares vendors viewed higher denomination as a way to support higher product prices. Higher denomination bill acceptance also made it essential to have dollar coin payout, which required more 4 and 5 tube coin changers.
Due to rising operating costs, market share has been driven to both the extra-large and small operators. The larger operators have the financial resources to meet increasing costs and offer a wider range of products and services at the same time. The small operators enjoy the advantage of low overhead.
The ability of Planet Antares vending operators to invest in new technologies that offer customer benefits can also be limited by suppressed revenues. Cashless payment options and broadband wireless internet facility have already been offered by convenience stores and other sectors to attract more customers.
Vending operators fall behind in this race to offer customers new technology. There has been hardly any improvement in the percentage of operators that use DEX handheld computers which allow for more accurate cash counting and the ability to match selections to account preferences based on line item sales.
Labels: planet antares, planet antares vending
posted by Chris Wick at
7:36 AM
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